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Savings of 2bn by going Dutch

The Irish economy could get an annual boost worth €2 billion if the government followed the strategy being adopted by the Dutch who have committed to cutting red tape by 25%.

Donal de Buitleir, a senior executive at AIB and a former finance department official, said the Dutch expect the move to boost gross domestic product by 1.5% per year when their reforms are completed in 2007.

“Every piece of legislation has costs involved — not only for those enforcing it, but also those complying with it,” de Buitleir said. “We should take these costs seriously as they may be higher than the benefits justify.” De Buitleir was commenting on a paper he delivered at the Dublin Economic Workshop in Kenmare last night.

Irish business owners are required to read, understand and implement almost 1,000 pieces of legislation, covering areas such as taxation, industrial relations, environment, health and safety.